What I'm Writing

I have an article in National Review (April 5 edition) on financial regulation.

Notwithstanding the good intentions of policymakers, who no doubt plan to create a stronger regulatory apparatus going forward, large banks will inevitably have too much power for the apparatus to govern them...So long as big banking is conjoined to big government, that is, we risk a return to the regime of private profits and socialized risk.

...To expand free enterprise, shrink the banks.

Other articles on the topic are by Veronique de Rugy and by Stephen Spruiell and Kevin D. Williamson.

Comments and Sharing

"To expand free enterprise, shrink the banks." It would be better to arrange things so that the failure of even a large bank would not threaten the overall financial system. This would probably require an end to deposit insurance, as well as readiness and willingness for aggressive monetary policy.

Blogging software: Powered by Movable Type 4.2.1.
Pictures courtesy of the authors.
All opinions expressed on EconLog reflect those of the author or individual commenters, and do
not necessarily represent the views or positions of the Library of
Economics and Liberty (Econlib) website or its owner, Liberty Fund,
Inc.

The cuneiform inscription in the Liberty Fund logo is the
earliest-known written appearance of the word
"freedom" (amagi), or "liberty." It
is taken from a clay document written about 2300 B.C. in the Sumerian city-state of Lagash.